This report focuses on the proprietary vocational school industry in New York State. Part 1 describes the increases in the utilization of student financial aid programs by vocational schools and the effects of this aid on school enrollment. This part also introduces the role of the New York State Education Department in the regulation of the proprietary vocational school industry. Part 2 discusses how the availability of financial aid has focused the attention of the schools on the most impoverished students because of their eligibility for maximum financial assistance awards. The job placement record of the vocational school industry in New York State is examined in part 3. Part 4 discusses the roles of the various state, federal, and private agencies in assuring quality control at vocational schools. This part also includes two case studies dealing with the ineffective public control exercised over the schools. Part 5 presents the report conclusions and recommendations including the need for enforcement and improvement of existing laws and regulations and for government coordination of funding and regulatory agencies. (JH)